https://asiatimes.com/author/david-p-goldman/
Beijing’s warning to fintech and property firms to raise equity and pay debts will hit stocks now but lift their long term prospects
Beijing’s warning to fintech and property firms to raise equity and pay debts will hit stocks now but lift their long term prospects
China’s economy and stocks have outperformed Western counterparts during the Covid recession. Image: Twitter
China’s regulators are fixing the roof while the sun is shining. With the economy in full rebound from the second-quarter Covid recession, Beijing has warned fintech and property companies to raise more equity and pay down debt.
That’s good news for China’s financial system but mixed news for some of this year’s best-performing stocks, including food-delivery service Methuan and smartphone maker Xiaomi. Financial stocks, by contrast, turned in their best relative performance of 2020 during the past month.